Salary by 7th every month? India's new labour codes unveil new IT pay mandate

Salary by 7th every month? India's new labour codes unveil new IT sector pay mandate

One of India's largest employment-generating sectors, the IT sector companies now face an updated salary payment mandate as the Indian government unveils four new Labour codes.

Under the new Labour reform norms, the government has mandated employers to pay timely wages to their workers in efforts to ensure financial stability and a reduction of work stress while supporting the overall morale at the same time.

The four new Labour codes have taken effect on an immediate basis from Friday, 21 November 2025. According to the Ministry of Labour & Employment data, prior to the new norms, there was no mandatory compliance for employers paying wages.

Will you get salary by 7th of every month?

The Ministry of Labour & Employment, on Friday, announced a new salary payment norm, effective from 21 November 2025, that will mandate all IT sector and Information Technology Enabled Services (ITES) sector companies to pay the salary of their employees by the 7th of every month.

The Indian government aims to make the salary payment process transparent in order to ensure trust among the workers.

The new Labour Codes also mandate that the IT companies will have to give ‘equal pay for equal work' to their employees while strengthening the participation of women in the workforce.

The new mandate also directs the IT companies to create facilities for the women workforce to work on the night shift, for them to get more opportunities to earn higher wages.

The new Labour Codes also directed that companies will have to ensure the timely resolution of harassment, discrimination, and wage-related issues, while guaranteeing the social security benefits for fixed-term employees and mandatory appointment letters.

Big change for IT companies?

IT and ITES sector workers' union, Nascent Information Technology Employees Senate (NITES), President, Harpreet Singh Saluja, said that the sector will witness significant changes as a large portion of the industry works through fixed-term contracts, vendor arrangements, staffing agencies and project-based deployments.

“With the new codes, fixed-term employees must now receive the same benefits as permanent employees for the duration of their contract. Rules around working hours and overtime also become more uniform, which is important in an industry where extended workdays, weekend work and high-pressure project cycles are common,” said Harpreet Singh Saluja.

The expansion of social security benefits for the employees has been a long-standing demand from the IT sector employees, which has now been addressed under the new Labour Codes (Code on Social Security, 2020).

All the workers will get PF, ESIC, insurance, and other social security benefits under the new code, effective from 21 November 2025.

The Indian government's move comes to replace the outdated labour laws in the country in efforts to keep pace with changing economic dynamics around the world.

Source: LiveMint
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